It is easy to get caught up in short term results in markets (just look at zero coupon bonds this year!), and 5 years can feel like a lifetime. Below Cliff looks at a basic three fund portfolio, short but fun.
Quote then link:
- Five years is not a very long time. You see crazy things over five years. Of course, it often feels like a lifetime to actually live through it.
- Over the long haul (which I’ll call 45 years here though there is no perfect agreed upon definition) some of the most basic parts of financial theory look pretty darn good.
- The long haul is a really long time. It sometimes feels like several lifetimes to actually live through it.